Michael Creed (Cork North West, Fine Gael)
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Question 1: To ask the Minister for Agriculture, Fisheries and Food the number of farmers participating in the rural environmental protection scheme on the date the scheme was suspended; the number of farmers whose REP scheme plans have since expired; the number expected to expire by the end of 2009 and 2010; if his attention has been drawn to the impact that this decision is having on individual farm families at a time when farm incomes and commodity prices are in free-fall; if he will review this decision and honour the programme for Government commitments of 70,000 farmers in the REP scheme; and if he will make a statement on the matter. [36516/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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On 9 July 2009, when I announced the closure of REPS to new applications, there were 55,630 farmers in the scheme. These included 12,575 who had applied for REPS 4 in 2008. In addition, the Department had received a further 16,718 applications before the 2009 closing date of 15 May, and these are currently being processed for entry into the scheme.

Since 9 July, 4,639 farmers have completed their contracts in REPS. Another 5,704 will have finished by 31 December 2009. All of these would have had an opportunity to apply for REPS by this year's closing date of 15 May to ensure that they could continue in the scheme. By 31 December 2010, a further 9,698 will have completed their contracts in REPS.

REPS 4 was closed to new applicants in July against the background of the situation in the public finances, the resources available to the Department and the substantial increase, over the past year, in the number of REPS participants. As indicated, almost 17,000 applications were received up to the closing date of 15 May for the 2009 scheme, and further applications which were received up to the time of closure will be processed as applications for 2010. Payments due to REPS farmers for 2009 will be the highest ever and all participants already in REPS will continue to receive annual payments until their current contracts run their course. The number of farmers in REPS is more than enough to ensure that all EU co-funding negotiated in the current rural development plan will be drawn down.

I plan to introduce a new agri-environment scheme in 2010 which will reduce compliance costs to participants and which will provide a menu of targeted actions from which farmers may choose. Funding for the new scheme will include the additional modulation funds which I ensured will be retained for the benefit of Irish farmers in the negotiations on what may be termed the CAP "Health Check". It will also include additional Exchequer funding. In August 2009, I invited submissions on the proposed new scheme. The details of the scheme are in the process of being finalised. It will require the approval of the European Commission, which has already received an outline of our proposals.

I am acutely aware of the current difficult situation with regard to farm incomes and of the intense pressure on many farm families. Yesterday, I announced the commencement of advance payments of 70% of single farm payments amounting to in excess of €800 million which will begin in the coming days. This is the first time that an advance of this magnitude has been paid at this early stage of the year; the official opening date for release of single farm payments is 1 December in each year. Furthermore, the payment of €220 million under the disadvantaged area scheme commenced last month. The combination of these two schemes together with payments under REPS and the suckler cow scheme amounts to payments of more than €1.8 billion to Irish farmers during 2009 and represents substantial and necessary support for farm incomes. I have also been working closely with like-minded ministerial colleagues in other member states to ensure the deployment of the full range of the EU market support instruments to support the dairy sector which has been undergoing a particularly difficult time.

Michael Creed (Cork North West, Fine Gael)
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I thank the Minister for his reply and I implore him to step back, even at this late stage, from this madness and economic folly by the Government. What the Minister will save will be spent by the Minister for Social and Family Affairs on an increased number of farm assist payments.

Rounded up, the figures given by the Minister suggest that by the end of 2010, approximately 20,000 less than the current total of 62,000 will be in REPS. This will cause phenomenal hardship to farm families. The Minister is aware that the Teagasc farm survey for 2008 and the anticipated results of a survey for 2009 will show income reductions of the magnitude of 30% to 35%. No other sector in the economy is suffering this type of income collapse. REPS puts bread and butter on the table for many farmers and it is collateral for bank loans.

I remind the Minister of a commitment in the programme for Government - although I appreciate that it is a work of fiction - to have participation rates of 70,000. However, he stated that by the end of 2010 it will be reduced to 42,000. Will the Minister step back from this folly? It is not too late to change his mind, admit he made a mistake and reopen REPS 4 for those ending their participation in REPS 2 or REPS 3 to maintain the participation levels at 62,000.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I understand it is easy to take from the figures I gave that 10,000 will exit the scheme each year. That is not correct. There will be almost 63,000 participating in the scheme this year. The number of people who may potentially exit the scheme next year will be less than 10,000. I can provide the Deputy with the figures afterwards but I want to be clear about this to the House. In excess of 1,500 applications were received subsequent to 15 May and prior to 9 July and the REPS 4 plans of these people will begin in 2010.

We will have 63,000 participants this year and next year we will have somewhat less. However, we will introduce a new agri-environment measure and the priority category for this new scheme will be those who have exited REPS 3. The level of funding available for the scheme has not yet been determined. What has been determined is that all the modulation funds and the European economic recovery programme available to the Department has been ring-fenced in its entirety for this agri-environment measure. The supplementing and Exchequer funding that will be provided for the scheme will not be determined until the Estimates budgetary process for 2010 is complete. This year, we have almost 63,000 participants in REPS, last year it was 46,000 and 17,000 new applicants entered the scheme prior to the 15 May deadline. This is by far the highest ever level of new applicants.

Michael Creed (Cork North West, Fine Gael)
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Does the Minister accept that a knock-on effect of his decision will be to force more farmers onto farm assist? On the basis that REPS is 45% co-financed by Europe this is a false economy as the State pays 100% of farm assist payments.

Did the Minister read the full McCarthy report prior to glancing at that initial recommendation of suspending access to REPS 4? It stated that a full value for money audit of the scheme should be conducted. The Minister of State, Deputy Sargent, who is sitting beside the Minister is a member of the Green Party, which is the great champion of the environment. There have been and continue to be huge benefits to the agri-environment as a result of REPS. The scheme which is proposed to replace it is a Mickey Mouse scheme that will do nothing for the environment or for farm incomes. I implore the Minister even at this late stage to withdraw his revised rural development plan programme in Europe and return to full access to REPS 4.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Deputy Creed would rightly be complaining at Question Time if we did not send a revised rural development plan to Brussels by 15 July. That was to draw down modulated funds and unused funds that had become available to us for the first time. We do not leave one cent in Europe, we draw down every single cent. Our rural development plan consists more of Exchequer funding than European funding. Of course in the context of deciding what level of funding will be available for REPS from the Exchequer, analysis will be done on people's income and on those who will exit the scheme and may have to rely on farm assist payments. We are conscious of this.

I want to be very clear on the following point. We had to make a decision to send a revised rural development plan to Brussels by 15 July. The McCarthy report had no bearing whatsoever on decisions we made on REPS. I did not see it until it was published.

Michael Creed (Cork North West, Fine Gael)
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The Department had an input into it. It made recommendations.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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That input was that we would rationalise a number of regional offices throughout the country, cut back on administration and create greater efficiencies to provide a better service for the farmers of the country. We are implementing that. It was one of the major recommendations.

Michael Creed (Cork North West, Fine Gael)
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The best service for farmers is REPS 4.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I agree REPS 4 is a great scheme. It must be remembered it was implemented and is paid for by the Government.

Andrew Doyle (Wicklow, Fine Gael)
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It is paid for by Europe.

Brendan Howlin (Wexford, Labour)
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I have called the Minister on Question No. 2.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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No, that is not the case. Over 50% of it is paid for by the Exchequer.

Michael Creed (Cork North West, Fine Gael)
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It is 55:45.

Seán Sherlock (Cork East, Labour)
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Question 2: To ask the Minister for Agriculture, Fisheries and Food the status of the REP scheme; the date of payment for REP scheme 4 in 2009; if sufficient funding is available to meet REP scheme 3 and 4 payments in 2009; the breakdown of the number of farmers in the REP scheme; and the persons who applied for the REP scheme in 2009 by county. [36202/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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REPS 4 was closed to new applicants in July against the background of the situation in the public finances, the resources available to the Department and the substantial increase in the past year in the number of REPS participants. Almost 17,000 applications were received up to the closing date of 15 May for 2009. Further applications which were received up to the time of closure will be processed as applications for 2010. Payments due to REPS farmers for 2009 will be the highest ever and all participants already in REPS will continue to receive annual payments until their current contracts run their course.

I plan to introduce a new agri-environment scheme in 2010 which will reduce compliance costs to participants and provide a menu of targeted actions from which farmers may choose. Funding for the new scheme will include the additional modulation funds which I ensured would be retained for the benefit of Irish farmers in the negotiations on the Common Agricultural Policy health check. It will also include additional matching Exchequer funding. The scheme's details are being finalised and will require the approval of the European Commission, which has already received an outline of our proposals.

Just under 51,000 farmers are in REPS. In addition, the Department is processing 16,718 applications received for REPS 4 in 2009 up to the closing date of 15 May. I will forward Deputy Sherlock a breakdown of these applications by county. A further 1,509 applications were received after this date and before the scheme closed to new applicants on 9 July. If they meet the scheme's requirements, this group of applicants will start their contracts in 2010.

As a measure approved as part of the current rural development programme, REPS 4 is subject to EU regulations which require detailed administrative checks on all applications, including plan checks, to be completed before the first 2009 payments issue. My officials are working on the processing of applications with a view to facilitating the release of payments at the earliest possible date.

Seán Sherlock (Cork East, Labour)
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If the original REPS plan was an agri-environment measure, why is it necessary to do away with the scheme and reintroduce an agri-environment measure which will have the same aims? Why did the Minister not refer to biodiversity? It will be argued the scheme was used as a supplementary income measure in some cases. The scheme's closure will result in more applicants for farm assist, which is already happening in some areas. Considering the biodiversity measures already contained under the existing scheme and its success, it seems illogical that a new scheme needs to be introduced when the old scheme could be continued.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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No one's income from REPS has been affected by the decisions announced in July. This relates to 2010 and people exiting the scheme in 2009. The highest level of payment under the scheme will be this year.

All Members will have received representations from individual farmers about the thorough, detailed and demanding inspection process to ensure that the applicant meets the scheme's criteria and standards. One benefit of the new scheme will be that farmers will not need to put in a whole-farm plan. Many farmers had to pay out €1,500 to put in a particular plan but this money can now be saved. The whole-farm undertaking has been a demanding process both for the farmer complying with every single criteria and the Department as the paying agency to ensure that it does not run foul of any Commission audits.

We want to introduce a good agri-environment measure to succeed REPS 3 for those who will exit it and be the priority category. People will be able to choose from a large number of measures.

Seán Sherlock (Cork East, Labour)
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Will the new scheme - we can call it the agri-environment measure for the time being - be administered by the Department of Agriculture, Fisheries and Food? What was the average pay out to farmers under REPS?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The average pay out was €6,200. In the part of the province of Ulster which does not come under our jurisdiction, the average pay out was €1,390 per farmer. Our scheme has been beneficial and, as the Deputy rightly pointed out, it is not just an income support. There are costs to the individual farmer arising from participating in the scheme. There are also benefits for the public good as well as the individual farmer. As Deputies Creed and Sherlock said, the scheme has brought good environmental benefits to the countryside. The farming community is the guardian of our countryside. Participation in REPS has offered a whole new approach to the protection, nurturing and cultivation of our environment. The new agri-environment measures that will be introduced will help that work considerably.

I appreciate the importance of REPS as an income to the farming community. It was not, however, a direct payment as substantial costs were incurred by every participant in the scheme to ensure that their farming practices were up to standard. The Department of Agriculture, Fisheries and Food will administer the new scheme.